The Government accelerates to approve this Tuesday the new addendum to the recovery plan

The Government has stepped on the accelerator to bring to the Council of Ministers this Tuesday the new addendum to the Transformation and Resilience Recovery Plan, the roadmap of reforms and milestones to which the disbursement of the Next Generation European funds is linked. Executive sources explain to Economic Information that the objective is for the European Commission give the green light to the proposed modifications before the end of the year. These changes will include the new number of loans that the country will request from community funds.

The diary The Country He announced that Spain will request a much lower volume than the 83.2 billion euros in credits that it was initially assigned (about 22 billion, around 25% of that total amount). The reason is that The Treasury is already financing itself in the markets at lower costs to those established for said loans thanks to the reduction in interest rates and the good performance of the national economy, which remains the driving force of the Eurozone.

In addition, the European credits must be executed before August 2026, when the program ends, and are associated with these specific milestones and objectives in a context in which the Government finds it difficult to carry out its reforms due to the lack of sufficient support in Congress. The same sources consulted rule out that this change in strategy will pose a problem in the eyes of Brussels. In fact, they remember that the European Commission asked all countries in the summer to simplify their plans in order to meet that deadline of August next year.

Spain is already working to promote its continuity beyond next year, an objective that is not going to be easy, as the Executive recognizes. Originally, the recovery plan had a planned allocation of 163,000 million euros, of which 79,800 million correspond to non-refundable transfers and another 83,200 million, to loans on advantageous conditions.

The latest figures provided by the Ministry of Economy, Commerce and Business indicate that 58.7 billion euros of Next Generation have already reached the real economy, while the number of beneficiaries is close to 1.3 million. Of them, 68.6% are SMEs and microenterprises. In August, Spain received more than 23,000 million euros from the fifth disbursement of the Plan, which includes 7,100 million in non-refundable transfers and 16,000 million in loans. The country has already received more than 55,000 million in transfers, 70% of the expected total.

In total, 264 milestones and objectives of the Recovery and Resilience Mechanism have already been met, which places it as the most advantaged student only behind Italy. The Government emphasizes that work is being done towards the sixth payment request and to ensure execution in the final section until the closing, scheduled for December 31, 2026.

Funds turn investment into an economic engine

To date, the NGEU have been a key factor in understanding how business investment has become one of the engines of the Spanish economy. If in the years 2022-24 growth was fundamentally based on the foreign sector (tourism and exports of non-tourist services) and public consumption, the recent review of the statistical series has shown that in 2025 private consumption and private investment “have been gaining prominence”they point out from Deutsche Bank.

In the entity they value how the GDP “accuses the positive effects of the NGEU program”although it is public investment, they add, “that seems to be favored the most.” On the contrary, public consumption has been losing weight in growth, and the foreign sector is beginning to show the negative effects of tariff fears, with less dynamism in goods exports, as was seen in the third quarter. Organizations such as the Bank of Spain have been demanding that the Government speed up the execution of the program to try to make the most of its economic benefits.